One of the greatest reasons why people fail to generate wealth is their own Behavior Finance. Even asset allocation stands at 2nd place. Behavior Finance is the psychology of investors that influences the result outcomes of investment done.
We human beings are not always rational and take decisions based on market movement, conditions, beliefs & biases. Our emotions are more volatile than those of the scheme or market where we have invested.
That is the reason, investor returns are always lesser than the scheme return. The investor can not put off their two powerful emotions of Greed & Fear.To overcome emotional decision i.e. behavior finance which is mainly driven by market sentiments, it is highly recommended attaching all investments with future financial goals.
Disclaimer: Investment in the securities are subject to Market Risk.
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